CABLE has been very interesting lately. Sterling has surprised with decent data but the overall outlook for the sterling fundamentally remains the same, the market is expecting one more rate hike.
The strong data however is creating a very RANGY environment for this pair. We saw this when the last bearish move was RETESTED all the way to the 68 fib zone.
My bias on this pair remains BEARISH however, and i believe that the USDX will continue to control the OVERALL DIRECTION of this currency pair. From a short term standpoint we can see a HEAD AND SHOULDERS pattern forming, with the HEAD being the afformentioned 68 retest of our bearish momentum. this is a strong indication that the pair will continue to move downward, so long as our NECKLINE is protected by price action.
Look for a formation of a RIGHT SHOULDER here potentially coming, before the true trend takes over.
Trail your stops on this pair folks it has been swinging back and forth and i expect it to CONTINUE to do so.
The strong data however is creating a very RANGY environment for this pair. We saw this when the last bearish move was RETESTED all the way to the 68 fib zone.
My bias on this pair remains BEARISH however, and i believe that the USDX will continue to control the OVERALL DIRECTION of this currency pair. From a short term standpoint we can see a HEAD AND SHOULDERS pattern forming, with the HEAD being the afformentioned 68 retest of our bearish momentum. this is a strong indication that the pair will continue to move downward, so long as our NECKLINE is protected by price action.
Look for a formation of a RIGHT SHOULDER here potentially coming, before the true trend takes over.
Trail your stops on this pair folks it has been swinging back and forth and i expect it to CONTINUE to do so.
Comment:
Head and shoulders has been updated to the proper pattern that CABLE is showing
BULLISH 3 DRIVE
BULLISH 3 DRIVE
PRICE ACTION IS RESPECTING THE TOP OF THE TRENDLINE
STOPS CAN BE PLACED ABOVE PAINTED RIGHT SHOULDER AREA